International Paper To Pay $80M To End GFG Trustee's Suit

Law360, New York (October 23, 2012, 8:06 PM EDT) -- International Paper Co. agreed to an $80 million settlement Monday in a dispute with the court-appointed liquidation trustee for Guaranty Financial Group Inc. that benefits the Federal Deposit Insurance Corp. and Guaranty bondholders.

The deal calls for International Paper, which acquired Guaranty's former parent Temple-Inland Inc. in February, to pay the FDIC $42 million and Guaranty bondholders $38 million, according to trustee Kenneth Tepper's motion for approval of the settlement filed in Texas bankruptcy court.